In a startling revelation made by Corporate Affairs Minister Harsh Malhotra in the Rajya Sabha, it has emerged that 2,227 companies have relocated their registered offices out of West Bengal to other States between 2019 and 2024. Among these, 39 are listed companies—a clear indication of the shifting corporate dynamics in the State.
Malhotra revealed this in a written reply to an unstarred question of the upper House. He said that companies cited reasons such as administrative and operational convenience, cost efficiency, and better managerial control for the move. The exodus spans industries across manufacturing, finance, commission agencies, and trading.
Companies relocating their registered offices followed the legal provisions outlined in Section 13(4) of the Companies Act, 2013, and Rule 30 of the Companies (Incorporation) Rules, 2014, Malhotra noted.
What’s Driving the Shift?
Experts speculate that infrastructural bottlenecks, regulatory complexities, and a perception of a less conducive business environment in Bengal could be the underlying factors.
States like Maharashtra, Gujarat, and Karnataka, known for their investor-friendly policies and robust industrial ecosystems, are often the preferred destinations.
The movement of such a significant number of companies — especially listed ones — underscores the urgency for Bengal to reassess its policies to retain and attract businesses, say economy watchers.
While administrative convenience and cost-effectiveness remain cited reasons, analysts point out that deeper structural challenges might also be at play.
Implications for Bengal
Corporate observers said that Bengal’s inability to retain businesses signals an urgent need for introspection.
“It is a wake-up call for policymakers and this trend highlights the urgent need for reforms to improve administrative ease, operational efficiency, and cost structures in the state. Unless Bengal takes swift action to address these concerns, it risks further losing its competitive edge to more business-friendly States like Gujarat and Karnataka”, said a top executive of an industry chamber, on condition of anonymity.
Bengal’s diminishing corporate footprint serves as a cautionary tale for regions failing to adapt to India’s rapidly changing economic landscape, economy watchers said.
By prioritising reforms and fostering a business-friendly environment, Bengal has the opportunity to reverse the tide and reclaim its status as a corporate hub.
The Ruling BJP led dispensation at the Centre is making it an issue — the question in Rajya Sabha was raised by BJP MP Samik Bhattacharya and BJP IT Cell head Amit Malviya on Wednesday took to social media platform “X” to say “This is a concerning trend, which underlines the grim state of lack of jobs, trade and industrial growth in West Bengal”.
